What is the mean interest rate per peso loaned for three different loans?
The mean interest rate per peso loaned is approximately 13.44%. It can be calculated by taking the weighted average of the interest rates for each loan.
Calculation of Mean Interest Rate:
The mean interest rate per peso loaned can be calculated by taking the weighted average of the interest rates for each loan. To find the weighted average, we need to multiply each loan amount by its corresponding interest rate, and then sum up these values.
Step-by-Step Calculation:
Loan 1: P^(100),000 at 10% per annum
Interest earned = P^(100),000 * 10% = P^(10),000
Loan 2: P^(75),000 at 15% per annum
Interest earned = P^(75),000 * 15% = P^(11),250
Loan 3: P^(50),000 at 18% per annum
Interest earned = P^(50),000 * 18% = P^(9),000
Now, we add up the interest earned from each loan:
P^(10),000 + P^(11),250 + P^(9),000 = P^(30),250
Next, we calculate the total loan amount:
P^(100),000 + P^(75),000 + P^(50),000 = P^(225),000
Finally, we divide the total interest earned by the total loan amount to find the mean interest rate per peso loaned:
Mean interest rate = Total interest earned / Total loan amount
Mean interest rate = P^(30),250 / P^(225),000
Simplifying the expression, we get:
Mean interest rate ≈ 0.1344444 or approximately 13.44%
Therefore, the mean interest rate per peso loaned is approximately 13.44%.